HEALTH SAVINGS ACCOUNT

A Health Savings Account (HSA) from First United Bank is a tax-exempt account established exclusively for paying qualified medical expenses for you and your family. HSAs are a sensible option for individuals and families covered by high deductible health insurance plans (HDHP).

Contributions may be tax deductible and withdrawals used for qualified medical expenses are tax-free. Consult your tax advisor or the IRS for additional details.

A First United Health Savings Account Features:

$5 monthly maintenance fee.

$25 minimum opening deposit.

Unused funds automatically roll-over from year-to-year.

No income limits.

Transfers can be made from your personal checking account online or directly deposited by your employer.

2016 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):

HSA holders can choose to save up to $3,350 for an individual and $6,750 for a family (HSA holders 55 and older get to save extra $1,000 which means $4,350 for an individual and $7,650 for a family) - and these contributions are 100% tax deductible from gross income.

Minimum annual deductibles are $1,300 for self-only coverage or $2,600 for family coverage.

Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,550 for self-only coverage and $13,100 for family coverage.

Minimum Deductible

Maximum Out-of-Pocket

Contribution Limit

55+ Contribution

Single

$1,300

$6,550

$3,350

$1,000

Family

$2,600

$13,100

$6,750

$1,000

For more detailed information HSA plan and taxes, visit the U.S. Department of Treasury website at www.ustreas.gov or talk with your tax advisor.

1 - Contribution limits may change annually according to the Internal Revenue Service.

2015 HSA Contribution Limits, Deductibles, and Out-of-Pocket Expenses

2015 offered individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):

HSA holders can choose to save up to $3,350 for an individual and $6,650 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,350 for an individual and $7,650 for a family) - and these contributions are 100% tax deductible from gross income.

Minimum annual deductibles are $1,300 for self-only coverage or $2,600 for family coverage.

Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,450 for self-only coverage and $12,900 for family coverage.

Minimum Deductible

Maximum Out-of-Pocket

Contribution Limit

55+ Contribution

Single

$1,300

$6,450

$3,350

$1,000

Family

$2,600

$12,900

$6,650

$1,000

For more detailed information HSA plan and taxes, visit the U.S. Department of Treasury website at www.ustreas.gov or talk with your tax advisor.

Eligibility

You Could be Eligible to Establish an HSA, If You Meet All of the Following Requirements:

You must be covered under a high deductible health plan (HDHP) that falls within the HSA contribution limits.

You must be covered under a high deductible health plan on the first day of the month.

You are not entitled to Medicare benefits.

You are unable to be claimed as a dependent on another person’s tax return.

Qualified Medical Expenses

Qualified Medical Expenses are expenses incurred after a HSA has been established, are not covered by insurance, and are paid by the HSA owner, his or her spouse, or dependents.

Types of Qualified Medical Expenses Include:

Doctor visits, vision expenses, prescriptions and dental expenses.

Diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function on the body.

For individuals over age 65, premiums for Medicare Part A or B, Medicare HMO, and the employee share of premiums for employer-sponsored health insurance, including premiums for employer-sponsored retiree health insurance.

Certain amounts paid for lodging while away from home that is essential to medical care.

For 2010 and earlier, nonprescription drugs as described in Revenue Ruling 2003-102.

To open a Health Savings Account, call (855) 382-7827 (FUB STAR) or visit your local First United Banking Center and bring:

Your government issued photo ID such as a driver’s license, state ID or U.S. Military ID